Strong correlation between 14 day RSI and MNQ
Long term bear trend clearly still intact. Head and shoulders pattern from late '21 was the start of the current trend.
It seems likely that a new head and shoulders pattern has emerged, and all of this is mostly within a downward sloping channel. Please see the lines and circles on the far right of the chart with the arrow signs.
Today's bounce from a TA perspective is no surprise as we are getting bounces off the 14-day RSI in oversold territory while still continuing to make regular lower highs and lower lows.
I predict more pain in the future. If you are holding tight to any equity positions to ride out the bear market, strongly consider hedging to prevent future losses.
For further context and to show strength in the technical correlation.
Historical bullish correlation - Points/Lines A, B, and unnamed lines leading into the head and shoulders chart patten.
Bearish correlation - Points/Lines C all the way to the right
I apologize if the vertical lines make this post too busy visually. I just wanted to show strength in the correlation.
It seems likely that a new head and shoulders pattern has emerged, and all of this is mostly within a downward sloping channel. Please see the lines and circles on the far right of the chart with the arrow signs.
Today's bounce from a TA perspective is no surprise as we are getting bounces off the 14-day RSI in oversold territory while still continuing to make regular lower highs and lower lows.
I predict more pain in the future. If you are holding tight to any equity positions to ride out the bear market, strongly consider hedging to prevent future losses.
For further context and to show strength in the technical correlation.
Historical bullish correlation - Points/Lines A, B, and unnamed lines leading into the head and shoulders chart patten.
Bearish correlation - Points/Lines C all the way to the right
I apologize if the vertical lines make this post too busy visually. I just wanted to show strength in the correlation.